Nevada Senate Bill 127 (SB127) has been passed by the Nevada Legislature, signed by the Governor and will go into effect October 1, 2013. The history of the bill and complete text can be found on the Nevada Legislature site at
Nevada joins California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Oregon, Vermont, and Washington in limiting employers from using consumer credit reports for employment purposes which include hiring, firing, disciplining, denying employment or promotion.
SB127 amends Nevada Revised Statues (NRS) Chapter 613 which involves Employment Practices.
Section 7 of this bill prohibits an employer from conditioning the employment of an employee or prospective employee on his or her consumer credit report or other credit information. Section 7 also prohibits an employer from taking certain employment actions based on the refusal of an employee or prospective employee to submit a credit report or other credit information or on the results of such a report or information. Section 7 further prohibits an employer from taking certain employment actions where an employee or prospective employee files a complaint, testifies in any legal proceeding or exercises his or her rights with respect to any violation committed by the employer.
Section 7.5 of this bill provides certain exceptions to the preceding prohibitions, including, without limitation, an exception for circumstances in which the information contained in the consumer credit report or other credit information is reasonably related to the position of employment.
Section 8 of this bill establishes the civil remedies available to a person affected by a violation committed by an employer, including employment of a prospective employee, reinstatement or promotion of an employee, payment of lost wages and benefits and the award of reasonable costs and attorney’s fees. Section 9 of this bill authorizes the Labor Commissioner to impose an administrative penalty against an employer for each violation and to bring a civil action against the employer.
SB127 contains exemptions for specific situations. An employer may request or consider a consumer credit report if:
1. The employer is required or authorized, pursuant to state or federal law, to use a consumer credit report or other credit information for that purpose;
2. The employer reasonably believes that the employee or prospective employee has engaged in specific activity which may constitute a violation of state or federal law; or
3. The information contained in the consumer credit report or other credit information is reasonably related to the position for which the employee or prospective employee is being evaluated for employment, promotion, reassignment or retention as an employee. The information in the consumer credit report or other credit information shall be deemed reasonably related to such an evaluation if the duties of the position involve:
(a) The care, custody and handling of, or responsibility for, money, financial accounts, corporate credit or debit cards, or other assets;
(b) Access to trade secrets or other proprietary or confidential information;
(c) Managerial or supervisory responsibility;
(d) The direct exercise of law enforcement authority as an employee of a state or local law enforcement agency;
(e) The care, custody and handling of, or responsibility for, the personal information of another person;
(f) Access to the personal financial information of another person;
(g) Employment with a financial institution that is chartered under state or federal law, including a subsidiary or affiliate of such a financial institution; or
(h) Employment with a licensed gaming establishment, as defined in NRS 463.0169.
The bill allows for the Nevada Labor Commissioner to impose an administrative penalty of not more than $9,000 for each violation of SB127.
While there are exemptions, Nevada employers should not forget another section of Nevada law. The Fair Credit Reporting Act (FCRA) allows for a Consumer Reporting Agency (CRA – Such as us, Safe-Screen) to report a criminal conviction no matter how long ago it occurred, NRS 598C.150 requires a CRA to purge and not report criminal convictions, civil judgments and other adverse information which precedes the report by more than 7 years. Generally, when a consumer credit report in not included with the background investigation, there is no state 7 year restriction.
We understand that navigating the regulatory environment regarding backgrounds can be complicated, and that’s what we’re here for Keeping You Safe™. 855-866-SAFE – http://Safe-Screen.com
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